Budget asset test changes may cause some pre 1 January 2015 account-based pensions to cease to be “grandfathered” under the “deductible amount” income test
One, possibly unintended, consequence of the 2015 Budget changes to the Centrelink assets test is that pre 1 January 2015 account-based pensions (which are currently excluded from the Centrelink “deeming” test and which therefore remain subject to the “deductible amount” test) will lose their “grandfathered” status if the member’s entitlement to the age pension is reduced to nil by operation of the changed assets test.
As the proposed changes to the assets test will not apply until 1 January 2017 (assuming the changes get through the Senate) advises and their clients may have more than a year in which to consider strategies to preserve their entitlement to, at least, a part pension and, therefore, retain pre 1 January 2015 status for their account-based pensions.
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Michael Hallinan
Special Counsel
Townsends Business & Corporate Lawyers
(02) 8296-6205
michael@townsendslaw.com.au
townsendslaw.com.au